Title

Amusement park industry of Karachi prospects and challenges

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

Spring 2019

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Industrial productivity | Amusement | Karachi -- Pakistan

Executive Summary

Subject report presents the existing market potential of amusement parks, with detailed customer insights, survey results and industrial analysis. Such in depth insight helped us to identity opportunities and challenges in amusement industry of Karachi. therefore, this report revolves around existing customers, potential customers, customers expectations, actual value to their money, existing investors, investors concerns and financial expectations, competition within industry, industrial trends, economic condition of the country, future growth, per capital income, disposable income, law and order situation in Karachi, happiness and satisfaction index, youth population in Karachi. This all parameters will help determine the future opportunities of industry and challenges. According to population census 2017, the population of Karachi has increased from 9.8 Mn (1998) to 16 Mn (2017), a growth of 63% over a period of 19 years indicates not only high population growth but also high migration from rural to urban locations. This increasing trend in habitats of Karachi along with rising per capital income( overall in Pakistan per capital income increased from 140,000 to 165,000 from 2012 to 2018), robust and relatively sustainable economic growth ( 5.4% in 2017), large percentage of young population (median age is 22.8 years), relatively better law and order situation, and more chances of foreign visitors/ tourism development provide enormous opportunities in Karachi for amusement industry. World wide amusement industry grew in 2017 by 8.6% (Global attractions attendance report) which indicate high growth patterns overall in attractions worldwide. Subject report also includes customers survey results about requirement of amusement parks in Karachi, their expectations and needs from this industry and shortcomings of this industry. Main findings from customer interaction are that an amusement park must have variety of amusement options to cater to people of various age groups and interests. Moreover, safety and security, cleanliness, and park ambiance, quality of rides and customer services quality are the major factors. Furthermore, quality of inside food, prices of food also matters. One of the research indicated that 82% of respondents were willing to spend 22% more money on entertainment especially on amusement parks, if they found the desired price value relationship of the offerings in amusement park. Current competitors in amusement industry of Karachi are Aladin Amusement park, Dreamworld amusement park, Air force Museum, Navy Museum, Askari park, Theme park of Bahria town and chunky monkey. Karachi amusement industry has observed extensive growth in short span and two main parks that is Askari Park and Theme Park Bahria town are being launched one after the other. It indicates solid growth prospects in this industry. Moreover, indoor theme parks also has been launched by Lucky group named wonder world in lucky mall and Super space Karachi in Aladin area by AA Disneyland Ltd. This all growth is in addition to small amusement theme parks opened in numerous malls. Investors confidence in prospects of this industry is improving and entrance of large groups like lucky group, Bahria town and Siddiq sons indicates solid growth expectations and future sustainability of this industry in long terms. Major challenges indicated by the investors and employees of this industry are law and order situation, non availability/ high prices of land inside city, non availability of relevant manpower, absence of rides manufacturing industry in Pakistan, high duty on imports of amusement items, depreciation of Pak Rupee, high energy cost, high maintenance cost due weather, low spending power of consumers, low literacy rate and discipline resulting in high operation cost. Due all above reasons, this industry either need support from government or otherwise a large some of captain would be required to undertake business venture in this industry.

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